Should I Pay This 6 y/o CO?

[SunriseEarth]

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@Anonymous wrote:

Let is age off. Totally useless paying it now, it does not change a thing about your score if it was paid. Let it fall off

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That's not true.   Since a balance is still reporting, it is still factored in your UTIL.   Also, they may be reporting this balance monthly, which makes the baddie look "recent".   

OP, if you're past SOL, consider making a very low offer to settle in full.   This would stop any monthly updating and could improve your UTIL.  What was the original CL of the account?   What is the current balance?

[Anonymous]

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@SunriseEarth wrote:

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@Anonymous wrote:

Let is age off. Totally useless paying it now, it does not change a thing about your score if it was paid. Let it fall off

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That's not true.   Since a balance is still reporting, it is still factored in your UTIL.   Also, they may be reporting this balance monthly, which makes the baddie look "recent".   

OP, if you're past SOL, consider making a very low offer to settle in full.   This would stop any monthly updating and could improve your UTIL.  What was the original CL of the account?   What is the current balance?

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If its over 6 years old and it has not been paid then why pay it?  The damage has already been done years ago and why would you not just let it fall off in 8 months reference the 7 year rule? I understand about the UTIL however still I would let it fall off in 8 months and be done with it. Thanks 

[Anonymous]

OP - Is there an immediate need to have it removed prior to it falling off? If your overall utl is good, are not needing to finance a major purchase, and have the CC's you need, I would wait it out. Just my opinion.

[gdale6]

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@Anonymous wrote:

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@SunriseEarth wrote:

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@Anonymous wrote:

Let is age off. Totally useless paying it now, it does not change a thing about your score if it was paid. Let it fall off

---

That's not true.   Since a balance is still reporting, it is still factored in your UTIL.   Also, they may be reporting this balance monthly, which makes the baddie look "recent".   

OP, if you're past SOL, consider making a very low offer to settle in full.   This would stop any monthly updating and could improve your UTIL.  What was the original CL of the account?   What is the current balance?

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If its over 6 years old and it has not been paid then why pay it?  The damage has already been done years ago and why would you not just let it fall off in 8 months reference the 7 year rule? I understand about the UTIL however still I would let it fall off in 8 months and be done with it. Thanks 

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We give options here on myFico the OP can then choose what to do and if this is updating monthly the damage is current and ongoing as the Fico score would be depressed as it looks new every month. The time a CO can report is actually 7 years plus 180 days from the accounts DoFD, the CRAs will typically schedule removal of it at 7 years but there is no guarantee. Another thing even though it may drop off your report you will have to disclose it for a home loan as it would be unpaid and not settled.

[Anonymous]

The way I see it, a paid collection looks better than an unpaid collection. And it's a high enough balance that there's a chance they might sue you and attempt to get a judgement. If you have the resources, my recommendation is pay/settle. It will improve how it looks on the report for the short time it remains on there, and you're more likely to get a paid account removed early than an unpaid one.

[kaybean22]

Thank you everyone for the advice!

I didn't realize you'd have to disclose unpaid debt for a home loan. That is the #1 reason I'm trying to clean up debt now -- we're planning to look at houses in 3-4 years. Husband's credit is trashed, so we're going to be leaning pretty hard on mine for the loan.

My theory is settle the debt so it reports as a 0 balance (I don't care how they notate it) and then in about a month send a goodwill letter. It's the holidays, and I've always had the best luck with this time of year for Goodwills. They are contininuing to report (such a pain) to the updated balance will help the score. If I can get it off early, bonus. If not, at least I'm being responsible. 

I already tried a phone call to PFD, but of COURSE that didn't work. I have the cash to settle it for up to half. I know it's been 6 years and due to fall of in September according the the CRAs, but I don't want an unpaid balance to hurt me down the road. 

[kaybean22]

Wow! Chase is FAST with updating the CRA's. Paid on Saturday, and today it reports a 0 balance with a "paid/was a charge-off" status, and it boosted my score by 13 points! 

I also sent the CEO an GW email on Friday, and my email tracker shows he/his office has been reading it/opening it all morning. Hoping to get a response!